Government ‘looking at industry in a new way’, says Digital Britain Minister
as Conservatives and Liberal Democrats welcome progress

Video games are looking increasingly likely to benefit from the forthcoming Budget. Stephen Timms MP, Minister for Digital Britain, told GamesIndustry.biz that the Government would “be able to provide an update of where we've got to” regarding tax breaks for the industry during the March 24 announcement. He said that the government was looking to support businesses that could drive Britain out of recession and that there was “no doubt that the computer games sector is one part of the economy where we can see very good prospects for growth in the future”.

Conservative shadow minister Ed Vaizey MP said that his party “would certainly look early and look hard at what support we could give the industry, given the competition it faces from countries such as Canada”. He added that “we are committed to maintaining R&D tax credits and it may be that these could be considered as a source of support.”

Liberal Democrat spokesman Don Foster MP said that his party too would support tax breaks for the video games industry if they were in the Budget, but added that the industry itself was not yet completely united behind such a proposal because games may have to demonstrate their cultural contribution to Britain. “These proposals are could cost £60 million over five years,” he said, “and it’s harder to make the case if the industry isn’t solidly behind them.”

Mr Timms said that "things have changed over the past couple of years", and that the government now viewed video gaming as well placed to help drive economic recovery. He added that "what has been lacking in my mind up until now is some really strong factual evidence [for tax relief]. I think we are now starting to see that coming together." Some industry estimates suggest the move could create 1,500 jobs.

Mr Vaizey said, however, that “with a hugely tight funding climate, we cannot make any firm promises”.

Last December's Pre-Budget Report had claimed that evidence presented by the video games industry was not "sufficiently compelling". Mr Timms now says, however, that "the industry is building its case.